Friday, November 24, 2017

Friday Closing Livestock Market Summary - Hog Contracts Close Holiday Week With Solid Price Progress

GENERAL COMMENTS
Feedlot country was dead quiet following Thanksgiving with both buyers and sellers apparently content with the weekly trade volume generated through Wednesday. According to the closing report, the national hog base is $0.45 higher ($50-$58.25, weighted average $57.10). The corn market settled 2-3 cent lower, pressured by discouraging export sales and a general lack of buying interest. Equities closed generally higher with the Dow advancing by 31 points and the Nasdaq gaining 21.

LIVE CATTLE
Technically, live futures closed on a mixed basis, ranging from 10 points higher in the far deferred to 90 lower in nearby February. Yet most of the action was of the selling variety, fueled by long liquidation and post-holiday profit-taking. Beef cut-outs: mixed, up $1.98 (choice: $210.99) to off $0.79 (select: $187.85) with light-to-moderate demand and offerings (38 loads of choice cuts, 24 loads of select cuts, 6 loads of trimmings, 14 loads of ground beef).

MONDAY'S CASH CATTLE CALL:
Steady. Monday will be typically slow with cash players focusing exclusively on the distribution of new showlists.

FEEDER CATTLE:
Feeder contracts closed 52 to 90 points higher, supported by short-covering, lower corn prices, and the premium of the cash index. Trade volume was extremely light. CME cash feeder index: 11/21: $156.58, off $0.13.

LEAN HOGS:
Lean issues settled 20 to 52 points higher with the help of follow-through buying and sign of cash stability. Spec and commercials will spend much of next week assessing likely production levels through the balance of 2017, and whether or not enough late-year pork demand can be marshaled to handle the supply situation. Carcass value closed moderately higher, supported by all primals except the picnic and butt. Pork cut-out: $82.32, up $0.34. CME cash lean index for 11/21: $63.98, off $0.43 (DTN Projected lean index for 11/22: $63.66, off $0.32).

MONDAY'S CASH HOG CALL:

Steady to $1 lower. Look for hog buyers to return to work on Monday with steady/weak bids and expecting a large late-month run of barrows and gilts.

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